The IRS today issued a release as a reminder that certain individual taxpayer identification numbers (ITINs) are set to expire at the end of 2020.
The IRS is completing its process for expiration of ITINs assigned before 2013, and is encouraging taxpayers to submit their renewal applications early to avoid refund delays next year.
As explained in today’s IRS release—IR-2020-181—under the “Protecting Americans from Tax Hikes Act” (PATH Act), ITINs that have not been used on a federal tax return at least once in the last three consecutive years and those issued before 2013 will expire.
ITINs are used by people who have tax filing or payment obligations under U.S. law but who are not eligible for a Social Security number. Taxpayers whose ITIN is expiring and who expect to have a filing requirement in 2021 must submit an ITIN renewal application. Others do not need to take any action.
Taxpayers will need to take action to renew the ITIN if it will be included on a U.S. tax return filed in 2021. Taxpayers who receive an IRS notice after acting to renew their ITIN do not need to take further action unless another family member is affected.
To renew an ITIN, a taxpayer must complete Form W-7 and submit all required documentation. Taxpayers submitting a Form W-7 to renew their ITIN are not required to attach a federal tax return. However, taxpayers must still note a reason for needing an ITIN on the Form W-7.
Spouses and dependents residing outside of the U.S. only need to renew their ITIN if filing an individual tax return, or if they qualify for an allowable tax benefit (e.g., a dependent parent who qualifies the primary taxpayer to claim head of household filing status). In these instances, a federal return must be attached to the Form W-7 renewal application.
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